U.S. equities rallied Thursday for the second day in a row even after the latest GDP showed a second-straight contraction, as investors bet the economic downturn would soon cause the Federal Reserve to end its aggressive hiking campaign.
The Dow Jones Industrials went on the attack Thursday, leaping 332.04 points, or 1%, to conclude Thursday at 32,529.63.
The S&P 500 hiked 48.82 points, or 1.1%, to 4,072.43.
The NASDAQ surged 130.17 points, or 1.1%, to 12,162.59.
All of the major averages are on pace for a winning week as well as their best month of 2022.
Traders had a deluge of second-quarter company earnings to digest Thursday. Honeywell and Etsy both reported strong results that boosted their shares 3.7% and 9.9%, respectively. Ford Motor climbed 7.1% after it beat profit and revenue estimates and raised its dividend.
On the flip side, shares of Meta Platforms dipped 5.2% on the back of disappointing quarterly numbers. Shares of Comcast slid 9.1% after reporting it failed to add broadband subscribers for first time ever.
Spirit Airlines rose 5.6% following its announcement that it has agreed to be acquired by JetBlue, after a months-long bidding war.
The moves came after the Bureau of Economic Analysis reported U.S. economic growth fell 0.9% in the second quarter. The Dow Jones estimate was for a gain of 0.3%. First-quarter GDP declined by 1.6%.
Nearly 49% of S&P 500 companies have reported earnings through Thursday's open. Of those companies 71.5% have beaten estimates.
Investors are looking ahead to results from Apple, Amazon, Intel and Roku slated for after the bell.
Treasury prices jumped, lowering yields to 2.67%, from Wednesday's 2.79%. Treasury prices and yields move in opposite directions.
Oil prices slid 18 cents to $97.08 U.S. a barrel.
Gold prices gathered $33.10 to $1,750.90 U.S. an ounce.